BofA Slashes Roblox Price Target to $48, Downgrades to Neutral
Bank of America (BAC) slashed its Roblox (RBLX) price target from $165 to $48 and downgraded the stock from Buy to Neutral, the most bearish call on Wall Street after Q1 2026 results. The revision reflects concerns that mandatory age verification and discovery algorithm changes are structurally harming the platform.
Key Numbers
Bank of America (BAC) slashed its price target on Roblox (RBLX) stock to $48 from $165 and downgraded the stock to Neutral from Buy, the most aggressive call on Wall Street following the company’s Q1 2026 earnings report.
Rating Change
- Previous Price Target: $165
- New Price Target: $48
- Previous Rating: Buy
- New Rating: Neutral
Analyst Rationale
BofA analysts believe that mandatory age verification and discovery algorithm changes recently implemented by Roblox are causing structural damage to the company’s business model. These changes restrict young users' access and reduce engagement, undermining the platform's core growth drivers.
Context
This downgrade follows Roblox’s Q1 2026 earnings miss. While some other analysts remain more optimistic, BofA’s move represents the largest price target cut among investment banks covering the stock. Roblox shares have fallen significantly year-to-date.
What to Make of It
The regulatory and operational challenges facing Roblox may lead investors to reassess its long-term growth prospects. However, it is too early to conclude that the growth story is permanently broken, as the company may adapt to the new environment. Investors are advised to monitor upcoming reports closely.
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